9/18/2018 Prakash Kr.

Gautam For KEC Publication

1
RESOURCE MANAGEMENT
AN OVERVIEW OF HUMAN
UNIT I
9/18/2018 Prakash Kr. Gautam For KEC Publication
2
Are Human/Employees
RESOURCE???
 WHAT IS HUMAN RESOURCE???

9/18/2018
The only living beings which mobilize all the physical
resources of an organization.

Prakash Kr. Gautam For KEC Publication

The dynamic resource which supports for the effective use
of other physical resources.

Represents skill, attitude, knowledge and performance of

employees.

Can be mobilized for organizational purpose.

3
 HUMAN RESOURCE MANAGEMENT

9/18/2018
Decenzo and Robbins: Human resource management is
comprised of the staffing, development, motivation and

Prakash Kr. Gautam For KEC Publication

maintenance functions.

R.W. Griffin: HRM is the set of organizational activities

directed at attracting, developing and maintenance an
effective workforce.

Ivancevich, Donnelly and Gibson: HRM is the process

of accomplishing organizational objectives by acquiring,
retaining, terminating, developing, and properly using
4
the human resources in an organization.
The science of attaining maximum individual development,
maintaining desirable working relationship, motivating and
maintaining employees.

9/18/2018
Concerned not only with managing people, but also with
solving the human problems of an organization intelligently

Prakash Kr. Gautam For KEC Publication

and equitably.

HRM ensures the following

 Right person for right job,
 employees’ potential is properly developed,
 maximum satisfaction is derived by them from their
work,
 objectives of the organization are attained and
 good human relations are maintained within 5the
organization.
 DEVELOPMENT OF HRM CONCEPT

9/18/2018
 Early Scientific Management (Industrial revolution)
Era

Prakash Kr. Gautam For KEC Publication

 The Personnel Management Era
 Scientific Management Era
 Human Relation Movement Era
 Human Resource Management Era
 Strategic Human Resource Management Era

6
 CHARACTERISTICS OF HRM
i. Emphasize on manpower

9/18/2018
ii. Element of management function

Prakash Kr. Gautam For KEC Publication

iii. Dynamic activity
iv. Pervasive function
v. Social process
vi. System oriented
vii. Focus on organizational strategy
viii.Integration of mutual interest
ix. Continuous process 7
 THE RISING INTEREST IN HRM
 Growing competition

9/18/2018
 Globalization
 Increasing diversity in workforce

Prakash Kr. Gautam For KEC Publication

 Increasing complexity
 Rapid changes in technology
 Contingent workforce
 Urgency of knowledge management
 Increasing virtual workplace
 Raising issue of employee involvement
 Organizational effectiveness
8
 HRM ENVIRONMENT

9/18/2018
 Human resource management environment is a unified,
comprehensive and integrated set of factors, elements or

Prakash Kr. Gautam For KEC Publication

forces which have positive or negative effects on human
resource functioning.
 Every function of human resource management needs to
operate within the environment.
 HR environment is composed with several factors
consisting of internal as well as external factors.

9
 COMPONENTS OF INTERNAL
ENVIRONMENT OF HRM

9/18/2018
HRM scope Organizational activities
• Organizational  Financing activities

Prakash Kr. Gautam For KEC Publication

policies  Marketing activities
 Organizational  Research and
structure development (R & D)
 Organizational activities
strategy
 Organizational
resources
 Organizational culture
10
 COMPONENTS OF EXTERNAL ENVIRONMENT
OF HRM
1. Specific environment 2. General environment

9/18/2018
 Stakeholders
 Shareholders
 Political-legal forces

Prakash Kr. Gautam For KEC Publication

 Employees  Socio-cultural forces
 Employees unions  Economic forces
 Pressure groups
 Labor market forces
 Competitors
 Suppliers  Technological forces
 Customers
 Strategic allies
 Regulator
 Government and court
11
 ETHICS IN HRM
Ethics are the fundamental principles of decent human

9/18/2018

conduct. Ethics are the the human principles of
conducting universally acceptable values for the

Prakash Kr. Gautam For KEC Publication

welfare of each.
 Ethical issues are the problems, situations or the
subject matter for discussion that requires a person or
organization to choose between alternatives that must
be evaluated as good (ethical) or bad (unethical).

12
 ETHICAL ISSUES

9/18/2018
1. Recruitment issues
2. Compensation issues

Prakash Kr. Gautam For KEC Publication

3. Diversity issues
4. Privacy issues
5. Restructuring issue
6. Performance appraisal issue

13
 STRATEGIC HUMAN RESOURCE MANAGEMENT
(SHRM)

9/18/2018
 Strategic human resource management is thinking
proactively regarding the effective and efficient
management of the work force in the organization.

Prakash Kr. Gautam For KEC Publication

 SHRM connects, more specifically integrates human
resource management activities with strategic goals
and objectives of the organization to ensure
improvement in business performance and strengthen
the organizational culture.
 It fosters innovation, flexibility, and competitive
advantages. SHRM creates a clear connection
between the goals of the organization and 14the
activities of the people who work there.
 ROLE OF HRM FUNCTIONS IN STRATEGY
FORMULATIONS

9/18/2018
1. Role of HRM functions in strategy planning
 Corporate level strategy formulation

Prakash Kr. Gautam For KEC Publication

 Business unit level strategy

 Functional level strategy

2. Role of HRM functions in strategy implementation

3. Role of HRM functions in strategic choice and
control

15
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
International Human Resource Management (IHRM) can be

9/18/2018
defined as the management concerns related with human
resource problems of multinational firms in foreign subsidiaries
or more broadly, with the unfolding HRM issues that are

Prakash Kr. Gautam For KEC Publication

associated with the various stages of the internationalization
process.
Issues IHRM
 IHRM concerns with the HRM issues across the national
boundaries.
 IHRM concerns with the relationships between the HRM
activities of organizations and the foreign environments in
which the organizations need to operate.
 IHRM concerns for comparative HRM studies in different part
of the globe i.e. in different economy for upgrading of employee
skills and so on. 16
 MAJOR DIMENSIONS IHRM
1. Planning

9/18/2018
2. Recruitment and Selection

Prakash Kr. Gautam For KEC Publication

3. Training
4. Compensation
5. Performance Appraisal

17
 GLOBALIZATION AND HUMAN RESOURCE
POLICY

9/18/2018
 Globalization is the process of interaction and integration
of people, product, organization and the society globally.
 Globalization facilitates free flow of factors of production

Prakash Kr. Gautam For KEC Publication

i.e. people, technology, material, information and capital.
 Employee's movement is being high which creates more
challenge to HR managers, organizations and behavioral
researchers.
 There must be wider perspectives in HR policies, formal
rules and guidelines to recruit and select the best talents
globally, train and develop human skills, reward
management to make the organization lucrative for
human talents. 18
 FUNCTIONS OF HRM
A. Acquisition B. Development Function

9/18/2018
Function i. Employee training
i. HR planning ii. Career development

Prakash Kr. Gautam For KEC Publication

ii. Recruitment iii. Management development
iii.Selection
iv.Socialization

C. Utilization Function D. Maintenance Function

i. Job design i. Safety and health
ii. Performance evaluation ii. Labour relation
iii. Job evaluation iii. Retirement
iv. Compensation
v. Reward 19
 HR PRODUCTIVITY
• Productivity

9/18/2018
Relationship between means of input and output
derived, means of getting efficiency.
• QWL

Prakash Kr. Gautam For KEC Publication

Favorableness of job environment for people, purpose
is to develop work environment that are excellent for
people and for economic health of the organization.
• Readiness for change
The ability or willingness of employees to be adjusted
in changing environment.

20
 CONTD…
 Profit

9/18/2018
Helps to achieve targeted level of profit.
 Job satisfaction

Prakash Kr. Gautam For KEC Publication

Employees’ attitude towards job, satisfaction with the
job because of matching employees’ ability and interest
with the assigned job.
 Organizational commitment
Employees’ attitude towards organization, tendency of
continuing the current organization

21